Equitable Bank Reverse Mortgage: Empowering Your Retirement with Home Equity
The Reverse Mortgage for Canadians 55 and over
Thousands of 55+ Canadians are beginning to realize just how wealthy they are, when they consider the equity they’ve built in their homes
- Access up to 55% of your home value in tax-free cash!
- Keep the home you love
- No monthly mortgage payments
WE’RE HERE TO HELP
What is an Equitable Bank Reverse Mortgage?
An Equitable Bank Reverse Mortgage allows Canadian homeowners aged 55 and older to access up to 59% of their home’s value in tax-free cash. This mortgage is designed for retirees looking to supplement their income, cover unexpected expenses, or fund their retirement without selling their home or making monthly payments. Repayment is only required when the home is sold, you move out, or you pass away. For more details, visit the Financial Consumer Agency of Canada
Benefits of an Equitable Bank Reverse Mortgage
- Access Up to 59% of Your Home’s Value: Use your home equity without the need to sell your home.
- No Monthly Payments: Repayment is deferred until the home is sold or you pass away.
- Tax-Free Cash: The funds you receive are tax-free, allowing you to use the money as you see fit.
- Retain Ownership of Your Home: You remain the owner and can continue living in your home for as long as you wish.
- Flexible Payout Options: Choose a lump sum payment, scheduled advances, or a combination of both.
Equitable Bank provides flexible reverse mortgage solutions that allow retirees to access their home’s value while staying in their home.
Why Consider a Reverse Mortgage with Equitable?
A reverse mortgage with Equitable Bank offers numerous benefits for Canadian homeowners who are 55 and older. Here are the key reasons to consider choosing this financial solution:
1. No Monthly Payments
With an Equitable Bank Reverse Mortgage, you are not required to make monthly mortgage payments. This provides relief from the financial strain of regular payments, allowing you to maintain cash flow throughout your retirement.
2. Tax-Free Cash
The funds you receive from a reverse mortgage are entirely tax-free. This means you can use the money without affecting your taxable income, government benefits such as Old Age Security (OAS), or Guaranteed Income Supplement (GIS).
3. Unlock Up to 55% of Your Home’s Value
Equitable Bank allows you to access up to 55% of your home’s appraised value. This gives you access to a significant amount of capital without the need to sell or downsize your property.
4. Stay in Your Home
You remain the owner of your home, with the ability to continue living in it for as long as you choose. There is no requirement to sell your property, ensuring you can age in place comfortably.
5. Flexible Payout Options
Equitable Bank offers flexible options for receiving your funds. You can choose a lump sum payment, schedule periodic advances, or a combination of both, depending on your financial needs and goals.
6. No Impact on Government Benefits
Since reverse mortgage proceeds are tax-free, your OAS, GIS, and other government benefits will remain unaffected. This allows you to boost your retirement income without jeopardizing any other sources of support.
7. Protected by a No-Negative-Equity Guarantee
Equitable Bank ensures that you will never owe more than the value of your home at the time of sale. Even if your home’s market value decreases, the amount you owe will not exceed the sale price.
8. Competitive Interest Rates
While reverse mortgage rates are generally higher than traditional mortgages, Equitable Bank offers competitive rates within the industry, and you can choose between fixed and variable interest options to suit your financial situation.
Choosing an Equitable Bank Reverse Mortgage gives you financial freedom and flexibility, allowing you to unlock the value of your home without the burden of monthly payments or selling your home. It’s an ideal solution for retirees who want to enhance their quality of life while staying in their homes.
Get started today by contacting Equitable Bank for a free consultation and find out how much you can unlock from your home!
How Does an Equitable Bank Reverse Mortgage Work?
An Equitable Bank Reverse Mortgage enables homeowners to receive cash based on a percentage of their home’s appraised value. You have several options for receiving your funds:
- Lump Sum: Receive the entire amount upfront.
- Scheduled Advances: Choose to receive regular monthly payments.
- Combination: A mix of lump sum and periodic payments.
You are not required to make any payments on the loan until you sell your home or move out. The reverse mortgage will be repaid using the proceeds from the sale of your home, either when you move into long-term care or pass away.
For detailed information, consult the Government of Canada’s reverse mortgage guide.
Equitable Bank Reverse Mortgage Eligibility
To qualify for an Equitable Bank Reverse Mortgage:
- You must be at least 55 years old.
- Your home must be your primary residence.
- Your home must meet the eligibility requirements for appraised value and location.
- The loan amount is based on factors such as your age, home value, and the condition of your property.
Equitable Bank vs Other Reverse Mortgage Providers
| Equitable Bank Reverse Mortgage | CHIP Reverse Mortgage |
|---|---|
| Up to 59% of home’s value available | Up to 55% of home’s value |
| No monthly payments required | No monthly payments required |
| Interest rates between 6% - 8% | Similar interest rates |
Equitable Bank Reverse Mortgage Interest Rates 2024
The interest rates for an Equitable Bank reverse mortgage vary depending on factors such as your age, home value, and location. Typically, reverse mortgage rates are higher than traditional mortgage rates due to the deferred payment nature of the loan. Current rates generally range between 6% and 8%.
To stay informed on mortgage rate trends, visit the Bank of Canada’s website.
You can also check the latest reverse mortgage rates by visiting one of Canada’s top rate comparison sites, Rates4u.
Who Should Consider an Equitable Bank Reverse Mortgage?
An Equitable Bank Reverse Mortgage could be an ideal solution for:
- Retirees Seeking Extra Income: If your retirement savings or pension don’t cover all your expenses, a reverse mortgage can provide a financial boost.
- Homeowners Looking to Stay in Their Home: Instead of downsizing or selling your home, you can remain in your home while accessing its equity.
- Seniors Wanting to Fund Major Expenses: Whether it’s home renovations, medical expenses, or helping family, a reverse mortgage can provide the funds you need without the burden of monthly payments.
Get An Estimate
See How Much You Can Borrow Today!
You can access up to 59% of your home’s appraised value, depending on your age, home value, and location.
No, the money you receive is tax-free and does not affect your Old Age Security (OAS) or Guaranteed Income Supplement (GIS).
No, you keep ownership as long as property taxes, home maintenance, and insurance are kept up to date.
You can access up to 55% of your home’s value, depending on factors like your age and home value.
No, reverse mortgage payments are tax-free, and they won’t impact your Old Age Security (OAS) or Guaranteed Income Supplement (GIS).
Expect costs like appraisal fees, legal fees, and administrative charges, which vary by lender.
Yes, you can sell your home at any time, but the reverse mortgage balance must be repaid from the proceeds.
Yes, most lenders allow early repayment, though penalties may apply depending on the contract terms.
Equitable Bank Reverse Mortgage Rates
Success Stories from Equitable Bank Reverse Mortgage Clients
Case Study: John and Linda, Ages 68 and 70
John and Linda wanted to make home improvements and travel in their retirement, but they didn’t want to sell their home. With an Equitable Bank Reverse Mortgage, they were able to unlock 45% of their home’s value, which provided them with the funds they needed to enjoy their retirement without making monthly payments.
Case Study: Susan, Age 72
Susan needed funds for medical expenses but didn’t want to sell her home. An Equitable Bank Reverse Mortgage allowed her to access 50% of her home’s value, giving her financial freedom without monthly repayments.
Understanding Reverse Mortgage Costs With Equitable Bank
Reverse mortgages include several costs beyond the interest rate:
- Processing Fees: Charges for setting up the mortgage, which may be a flat fee or based on the loan amount.
- Closing Costs: Fees associated with finalizing the mortgage, such as legal and administrative fees.
- Independent Legal Advice (ILA): Some lenders require you to obtain legal advice, which can cost between $350 to $500.
Why Are Interest Rates Higher for Reverse Mortgages with Equitable Bank?
Reverse mortgages pose more risk to lenders since repayment isn’t required until the future, and borrowers make no monthly payments. To offset this risk, lenders charge higher interest rates compared to traditional mortgages.
How Is Interest Calculated on a Reverse Mortgage with Equitable Bank?
Interest is only charged on the amount you borrow, not the maximum amount available. It accrues daily and is compounded semi-annually for fixed rates or monthly for variable rates.
Example Calculation
- Home Value: $500,000
- Borrowed Amount: $100,000
- Interest Rate: 4.89% annually
Steps:
- Daily Interest Rate: 4.89% ÷ 365 = 0.0134% per day
- Daily Interest Charge: $100,000 × 0.0134% = $13.40
- Interest Over Six Months: $13.40 × 180 days = $2,412
- New Balance After Six Months: $100,000 + $2,412 = $102,412
- Compound Interest: Interest now calculated on $102,412
After one year, the total interest accrued would be approximately $4,900, and the loan balance would be around $104,900.
How is compound interest applied on Reverse Mortgages?
After six months, compound interest takes effect, meaning the interest is charged not just on the principal loan but on the accumulated interest. For example:
- Second six-month daily interest: $102,444 x 0.01358% = $13.91/day.
- Interest for another six months: $13.91/day x 180 days = $2,504.
Adding this to the outstanding balance of $102,444 gives a new loan balance of $104,948.
Thus, after one year, the total interest would amount to $4,948 on a $100,000 reverse mortgage with a 4.89% interest rate.
Get An Estimate
See How Much You Can Borrow Today!
Protections for Borrowers Of Reverse Mortgages
Both HomeEquity Bank CHIP and Equitable Bank Flex guarantee that borrowers won’t owe more than the value of their home when it’s sold. This means that even if the home’s value decreases, you will never have to make up the difference if the mortgage balance exceeds the home’s sale value. For instance, if you borrow $275,000 against a home worth $500,000 and the home’s value drops, you are still protected by the “no negative equity” guarantee.
These terms and the method of compounding interest highlight the importance of understanding how interest and fees accumulate over time in reverse mortgages.
Contact Us for More Information on Equitable Bank Reverse Mortgages
Looking to learn more about how an Equitable Bank Reverse Mortgage can help you? Our team of experts is here to provide a free consultation and help you make the right decision for your retirement.
Citadel Mortgages is one of Canada’s leading brokerages specializing in reverse mortgages. Visit Citadel Mortgages to learn more today.
Reverse Mortgage Rates Equitable Bank
Reverse Mortgage Explainer Video
Unlock the value in your home and turn it to cash to help you enjoy life on your terms. Inquire about your reverse mortgage today.
Get Your Estimate
Reverse Mortgage Calculator: Estimate How Much You Can Borrow
Are you curious about how much you could access from your home equity with a reverse mortgage? Use our simple and intuitive Reverse Mortgage Calculator to get an estimate of how much you could borrow based on your home’s current value, your age, and other factors. This tool can help you better understand your financial options and decide whether a reverse mortgage is right for you.
How the Reverse Mortgage Calculator Works:
- Enter Your Home’s Current Value: The estimated market value of your property.
- Select Your Age: The older you are, the more you can borrow. If you have a spouse, include both ages.
- Choose Your Location: Property location affects your borrowing power, as home values vary by region.
- See Your Estimated Loan Amount: The calculator will provide a projection of the maximum amount you may qualify for.
Reverse Mortgage Calculator Equitable Bank
See How Much You Can Borrow Today!
See Reverse Mortgages By City
See Reverse Mortgages By Bank
Reverse Mortgage News
